Weis Markets Posts Q3 Income Increase
Despite a 1.7 percent decrease in sales, Weis Markets posted a net income increase of 1.2 percent to $17.2 million for the third quarter while its earnings per share increased 1.6 percent to 64 cents per share compared to the same period in 2011.
During the 13-week period ending Sept. 29, Weis Markets' operating income increased 1.3 percent to $26.5 million. At the same time, sales decreased 1.5 percent to $668.4 million while comparable stores decreased 1.7 percent. Weis attributed its sales results to an unfavorable year-over-year comparison. In September 2011, a majority of its stores received emergency sales surges because of Hurricanes Irene and Lee. Third-quarter sales were also impacted by a $4.5-million decline in pharmacy sales due to the conversion of brand drugs to generic.
The company says the increases are the result of its continuing focus on promotions and marketing, increased store-level productivity, improved operational and supply chain efficiencies, and a decrease in depreciation expenses due to its change of depreciation methods from accelerated to straight-line.
For the 39-week period ending Sept. 29, sales totaled $2.01 billion, down 0.4 percent, while comparable store sales decreased 0.2 percent. For the same period, the company's net income increased 7.3 percent to $60.4 million while year-to-date earnings per share increased 7.7 percent to $2.25 per share. Year-to-date operating income increased 7.1 percent to $92.2 million.
Sunbury, Pa.-based Weis Markets operates 162 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia.